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JSW Energy Q2 net profit up by 6.3pct

Power News - Published on Tue, 06 Nov 2018

Image Source: JSW Group
JSW Energy posted a 6.3 per cent increase in consolidated net profit to about INR 316 crore in the quarter ended September 30, 2018. The company had posted a profit of INR 297 crore in the same period a year ago.

JSW Energy said that the average price of Indian basket of crude has surged from USD 68 per barrel since April 2018 to USD 78 per barrel in September 2018 which resulted in firming up of input cost pressures for the manufacturing firms, thereby denting their profit margins. The company said that "The fuel cost for the quarter increased by 42 per cent YoY to INR 1,329 crore, primarily due to an increase in international prices of coal further exacerbated by the weakening of rupee.”

The consolidated revenue from operations of JSW Energy increased 18.6 per cent to Rs 2,430.76 crore during the reported quarter from Rs 2049.04 crore in the same period of 2017-18. JSW said that long-term power purchase agreement (PPA) proportion improved to 80.4 per from 75 per cent on quarter-on-quarter basis after securing additional 230 megawatts (MW) and 6.5 MW PPAs within the JSW Group at Vijayanagar and Ratnagiri plants respectively

The Company said that "The Company achieved higher plant load factor (PLF) in the second quarter of the financial year 2019 across all locations on a year-on-year basis, accompanied by better merchant realisations.”

JSW Energy's reported decline in net debt to equity to 0.9 times with reduction of net debt by INR 400 crore, through prepayment and scheduled repayments. Talking about the business environment, JSW Energy said that the sector is also likely to see increased consolidation which will further aid the demand-supply balancing.

The statement said that "However, higher imported coal prices and low domestic coal availability especially for private sector power plants, continue to remain key concerns for the sector.” It added that the power sector outlook over next 3 to 5 years has improved as power demand grows steadily considering the various measures undertaken by the government such as UDAY Scheme, "Power for All" by 2019 initiative, SHAKTI scheme etc.

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Posted By : Rabi Wangkhem on Tue, 06 Nov 2018
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